BUSINESS

Canoo’s Oklahoma City Facility Accelerates EV Manufacturing Strategy with Foreign Trade Zone Designation

March 28, 2024

Canoo’s Oklahoma City facility is now a Foreign Trade Zone (FTZ), approved by the U.S. Department of Commerce.
FTZ status brings benefits like duty elimination on exports and deferred duties on imports, boosting Canoo’s profitability and working capital.
With plans for expansion and a focus on domestic sourcing, Canoo aims to strengthen local economies while creating high-quality manufacturing jobs.

In the heartland of America, in Oklahoma City, something exciting is happening. Canoo’s factory emerges as more than just an electric vehicle (EV) production site – it’s getting special recognition. The U.S. Department of Commerce just named it a Foreign Trade Zone (FTZ). This means big things are happening, not just for Canoo, but for the whole area. But it’s not just about technological progress; it’s a story of economic rejuvenation, job creation, and a strong commitment to American innovation.

Canoo’s approach to EV production integrates breakthrough technologies, unique design concepts, and a business model spanning multiple owners across the vehicle lifecycle. Manufacturing strength is centered around a Canoo’s modular electric platform carefully designed to maximize interior space and meet various business and consumer needs.

The designation of Canoo’s Oklahoma City facility as an FTZ not only spotlights its commitment to American manufacturing but also signals a new era of economic growth and job creation. Tony Aquila, Investor, Executive Chairman, and CEO of Canoo, expressed his gratitude, stating, “We are proud to announce that we have achieved another important building block in our strategy by creating one of the largest Foreign Trade Zones in the State of Oklahoma.”

With over 100 current employees, Canoo’s Oklahoma City plant will generate as many as 1,100 high-quality manufacturing jobs at full capacity. The FTZ designation brings a host of benefits, including the elimination of customs duties on vehicles exported overseas and the deferral of duties on imported parts for domestic sales. This step not only boosts profitability but also increases working capital by millions of dollars, enabling Canoo to offer cost-effective solutions to its customers.

The Foreign Trade Zone status opens avenues for international expansion, with anticipated cost reductions of up to 5% on parts imported from around the world. Canoo’s dedication to sourcing more than 90% of its parts from the U.S. and allied nations shows its commitment to promoting domestic production and backing local economies.

Aquila stresses the strategic importance of the Oklahoma City location, situated on I-40, a crucial route for nationwide product distribution. “This initiative helps bring back American manufacturing by creating, restoring, growing, and protecting ‘Made-in-America’ products and advanced manufacturing jobs,” he added.

Canoo’s FTZ initiative not only benefits the company but also contributes to the broader economic landscape of Oklahoma. With plans to expand its manufacturing footprint in the state, Canoo has its sights on becoming a key player in the advanced manufacturing sector in the heartland of America.

Canoo MPDV Oklahoma Foreign Trade Zone FTZ — _{Canoo multi-purpose delivery vehicel (MPDV)}

In its pursuit of manufacturing excellence, Canoo stands out by managing its own supply chain, ensuring smooth integration between parts procurement and production processes. Unlike competitors who delegate these vital tasks, Canoo remains dedicated to building a vertically integrated manufacturing system that emphasizes efficiency and quality.

As Canoo waits for approvals for its remaining manufacturing facilities in Oklahoma, the company’s FTZs are set to become some of the largest in the state. This expansion not only highlights Canoo’s dedication to innovation and sustainability but also confirms its position as a leading force in shaping the future of EV manufacturing.